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Monroe’s Zia Uddin says Wendel investment will speed up growth in private credit; plus New Mountain’s next single-asset CV

Good morning, Hubsters. MK Flynn here in New York with the US edition of the Wire.

We’ve got a deal-packed newsletter for you this morning.

We’ll kick things off with an interview with Monroe Capital president Zia Uddin about why the Chicago mid-market lender sold a 75 percent stake to Paris PE firm Wendel Group.

Next up, sources sayNew Mountain Capital is readying another single-asset continuation fund.

Also on the Hub today is a conversation with Rick Zall, chair of the healthcare transactions and regulatory practice at law firm King & Spalding, about the changing environment for healthcare deals, including which subsectors PE firms are embracing and which they’re avoiding. 

We’ll close with a People Move at BayPine.

Accelerating the timeline

Private credit is one of the fastest-growing segments of the financial services market in the US. Some estimates peg the asset class at $2 trillion – 10 times its size 15 years ago.

Monroe Capital has long been a trusted source of loans in the US mid-market. Earlier this month, the Chicago lender agreed to sell a 75 percent stake in the company to Wendel Group, a Paris-based private equity firm, for $1 billion.

Zia Uddin explained the rationale for the deal to PE Hub’s Obey MartinManayiti.

Another single-asset CV

New Mountain Capital, which last year closed one of the major single-asset continuation fund deals in the market, is working on a deal to move portfolio company Real Chemistryout of the fifth fund and into a continuation pool for more time and capital to grow the business, sources told Buyouts editor Chris Witkowsky.

To learn more, upgrade to the premium version of the Wire.

Navigating new healthcare environment

Private equity firms may be avoiding investments in physician practices these days due to increased government scrutiny.

To find out which subsectors are right for PE in the new environment, PE Hub’s John R Fischerreached out to Rick Zall, chair of the healthcare transactions and regulatory practice at law firm King & Spalding.

Premium subscribers to the Wire may read an excerpt of their discussion:

'Accomplished technology investor'

BayPine, a buyout shop led by ex-Silver Lake and Blackstone principals, has hired a nearly 15-year veteran of Bain Capital as partner, reports Buyouts senior writerKirk Falconer.

To find out more, upgrade your subscription.

On that note, I’ll sign off. As always, I’d love to hear from you at mk.flynn@pei.group.

Craig McGlashan will write the Europe edition of the Wire tomorrow morning, and Obey Martin Manayiti will bring you the US Wire.

Happy dealmaking,

MK

Read the full Wire commentary on PE Hub ...

Also of note (may require subscriptions)

Ardian plans to consolidate the fragmented Italian ophthalmology market by targeting small independent clinics led by single practitioners for its Vista Vision platform, Marco Molteni, managing director, and Giacomo Brettoni, director at Ardian Expansion team, told PE Hub.

Agri Investor speaks to Fiera Comox head of natural capital Jeff Zweig about what it takes to win trust and structure deals with Indigenous groups. “The first order of business in a meeting is frankly to listen, to understand [that] the histories are specific and particular to those individuals, those tribes or those First Nations," Zweig said.

Los Angeles-headquartered manager Ares Management closed its sixth Europe-focused opportunity fund, Ares European Real Estate Fund VI, with €2.24 billion in capital commitments inclusive of co-investment, PERE has learned.

They said it

“Now that we have dedicated capital, I think we can accelerate that growth.”

— Zia Uddin, president, Monroe Capital, on selling a 75 percent stake in the lender to Wendel Group